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Published by www.EPlusPromotes.com www.TheCatoctinBanner.com The Catoctin Banner Newspaper January 2016 Page 3
Are the New “Smart” Credit
Cards Just Another Dumb
Idea? START
Nicholas DiGregory
While the holiday season is high-tech hassle of the chip credit
usually accompanied by extravagant cards—or maybe you haven’t. HERE
announcements of better, brighter, That’s because only about twenty-
and more meaningless high-tech toys, five percent of major retailers are
there is one piece of recently-released utilizing the microchip technology
technology that you may want to pay of the new “smart” credit cards,
attention to: “smart” credit cards. according to a survey conducted by FOR A
These “smart” credit cards, also ConsumerWorld.org.
known as “chip” cards, have been Although ninety-nine percent
stealing headlines and filling search of major retailers have installed
engines since their introduction earlier integrated circuit card readers at
this year. Countless debates have their registers, only ten percent of BETTER
been started regarding their security, those chains can actually use those
efficiency, and cost-effectiveness. There readers at most of their stores.
has been much speculation regarding According to the ConsumerWorld.
these little pieces of plastic, but you org survey, only Walmart, Sam’s
can be sure of one thing: if you don’t Club, Target, Best Buy, Home
have one in your wallet or purse yet, Depot, Lowe’s, Macy’s, Old Navy, YEAR
you probably will very soon. Rite Aid, and Walgreens have fully
The United States is slowly leaning adopted the integrated circuit card
towards full adoption of the integrated system.
circuit cards that we know as “smart” Most other major retailers
or “chip” cards. Developed through a have expressed their intent to
joint effort by EMVco—a consortium switch over to integrated circuit
of the major credit card companies card readers once the holiday
led by Europay, MasterCard, and season has ended. Reasons for this
Visa—integrated circuit cards were rationale have varied with each
developed to make digital transactions company, although most of the
more secure. retailers have emphasized that the
Until now, credit cards have solely holiday season is not the time to
utilized a magnetic strip to relay their overhaul the purchase process by
digital signatures during purchases, implementing new software and
a process that was relatively easy hardware, thus creating confusion
for hackers to counterfeit. The new among customers and employees
integrated circuit chips do not have alike.
that weakness; when you insert a chip While most major retailers
card into the card reader, it generates will have instituted “smart” card
a one-time-use authorization code that systems by the early months of
must match the individual transaction. 2016, most experts believe that it
Additionally, chip card readers require will take the United States several
a signature or pin to provide an years to switch over to the chip
additional layer of security. card system completely. Javelin NO JOINING
But the question remains: Do these Strategy and Research, a corporate
extra security features really work? research group that reviews
According to the Smart Card Alliance, transaction trends and practices,
which was formed in 2012 to find a predicted that the United States
solution to magnetic strip credit cards, will not fully adopt the integrated FEE IN
integrated chip cards have cut down circuit card system until 2019.
fraud-related damages by sixty-seven This is due mainly to the fact that
percent in the U.K. and seventy-three smaller businesses will not be able
percent in Canada. The Alliance to process chip cards until the
expects a similar response in the U.S., card readers and their software JANUARY!
once integrated circuit cards have been becomes less expensive.
fully instituted. So what does all this mean
While the additional security of for you as a credit card user?
integrated circuit cards has helped Well, although your credit card The Y. For a better us. TM
TM
to streamline their widespread company is likely issuing new
introduction in the United States, “smart” cards already—you may
many companies and consumers have already have one—it may be a GREEN VALLEY Y DOWNTOWN Y
criticized the longer wait associated while before you can utilize their 11791 Fingerboard Rd 1000 N Market St
with a “smart” card purchase. If you’ve additional safety benefits at most Monrovia, MD 21770 Frederick, MD 21701
done any holiday shopping recently, of the stores you visit on a daily 301-607-6900 301-663-5131
you’ve probably experienced the basis. www.frederickymca.org
www.thecatoctinbanner.com
Are the New “Smart” Credit
Cards Just Another Dumb
Idea? START
Nicholas DiGregory
While the holiday season is high-tech hassle of the chip credit
usually accompanied by extravagant cards—or maybe you haven’t. HERE
announcements of better, brighter, That’s because only about twenty-
and more meaningless high-tech toys, five percent of major retailers are
there is one piece of recently-released utilizing the microchip technology
technology that you may want to pay of the new “smart” credit cards,
attention to: “smart” credit cards. according to a survey conducted by FOR A
These “smart” credit cards, also ConsumerWorld.org.
known as “chip” cards, have been Although ninety-nine percent
stealing headlines and filling search of major retailers have installed
engines since their introduction earlier integrated circuit card readers at
this year. Countless debates have their registers, only ten percent of BETTER
been started regarding their security, those chains can actually use those
efficiency, and cost-effectiveness. There readers at most of their stores.
has been much speculation regarding According to the ConsumerWorld.
these little pieces of plastic, but you org survey, only Walmart, Sam’s
can be sure of one thing: if you don’t Club, Target, Best Buy, Home
have one in your wallet or purse yet, Depot, Lowe’s, Macy’s, Old Navy, YEAR
you probably will very soon. Rite Aid, and Walgreens have fully
The United States is slowly leaning adopted the integrated circuit card
towards full adoption of the integrated system.
circuit cards that we know as “smart” Most other major retailers
or “chip” cards. Developed through a have expressed their intent to
joint effort by EMVco—a consortium switch over to integrated circuit
of the major credit card companies card readers once the holiday
led by Europay, MasterCard, and season has ended. Reasons for this
Visa—integrated circuit cards were rationale have varied with each
developed to make digital transactions company, although most of the
more secure. retailers have emphasized that the
Until now, credit cards have solely holiday season is not the time to
utilized a magnetic strip to relay their overhaul the purchase process by
digital signatures during purchases, implementing new software and
a process that was relatively easy hardware, thus creating confusion
for hackers to counterfeit. The new among customers and employees
integrated circuit chips do not have alike.
that weakness; when you insert a chip While most major retailers
card into the card reader, it generates will have instituted “smart” card
a one-time-use authorization code that systems by the early months of
must match the individual transaction. 2016, most experts believe that it
Additionally, chip card readers require will take the United States several
a signature or pin to provide an years to switch over to the chip
additional layer of security. card system completely. Javelin NO JOINING
But the question remains: Do these Strategy and Research, a corporate
extra security features really work? research group that reviews
According to the Smart Card Alliance, transaction trends and practices,
which was formed in 2012 to find a predicted that the United States
solution to magnetic strip credit cards, will not fully adopt the integrated FEE IN
integrated chip cards have cut down circuit card system until 2019.
fraud-related damages by sixty-seven This is due mainly to the fact that
percent in the U.K. and seventy-three smaller businesses will not be able
percent in Canada. The Alliance to process chip cards until the
expects a similar response in the U.S., card readers and their software JANUARY!
once integrated circuit cards have been becomes less expensive.
fully instituted. So what does all this mean
While the additional security of for you as a credit card user?
integrated circuit cards has helped Well, although your credit card The Y. For a better us. TM
TM
to streamline their widespread company is likely issuing new
introduction in the United States, “smart” cards already—you may
many companies and consumers have already have one—it may be a GREEN VALLEY Y DOWNTOWN Y
criticized the longer wait associated while before you can utilize their 11791 Fingerboard Rd 1000 N Market St
with a “smart” card purchase. If you’ve additional safety benefits at most Monrovia, MD 21770 Frederick, MD 21701
done any holiday shopping recently, of the stores you visit on a daily 301-607-6900 301-663-5131
you’ve probably experienced the basis. www.frederickymca.org
www.thecatoctinbanner.com
